Today 23 November 2023, the Finnish Government adopted a government resolution to launch the tendering procedure for five offshore wind farm projects on public water areas. With the government resolution, Metsähallitus will immediately launch the process to select the implementing partners for two offshore wind power projects.
The competitive tendering procedures to be launched this year will concern the offshore wind power projects located off Närpiö and off Pyhäjoki and Raahe on the west coast of Finland. The implementation of the process for the other three areas will be confirmed in 2024. The tendering process is estimated to take about a year. The actual decision on granting the right of use to the selected project partner will be made by the Government after the tender procedure.
The Edith project will be located in the sea area belonging to Närpiö and the Ebba project in the sea areas off Pyhäjoki and Raahe. The municipalities have approved the planning proposals for the projects, and the preliminary studies launched by Metsähallitus are progressing.
The total planned capacity of the Edith and Ebba offshore wind power projects will be approximately 3,000 MW. The total investment value of the projects is estimated to be EUR 6–8 billion. Once completed, the projects are estimated to produce up to 14 TWh of clean electricity annually, which would currently cover more than 17% of Finland’s electricity consumption.
“The Government’s decision comes at a good time and is a concrete step forward in increasing offshore wind power production in Finland at the beginning of the 2030s. We will continue our determined efforts to enable clean energy production in line with the goals of the Finnish green transition”, says Juha S. Niemelä, Director General of Metsähallitus.
“Metsähallitus has extensive experience both in planning the use of sea areas and in major projects requiring land use planning. As a state-owned enterprise, we have systematically developed our wind power expertise. Combined with the experiences gained from our first offshore wind power project tendering process last year, I would say our starting points for launching new projects and placing them on the market are excellent,” says Director General Niemelä.
Metsähallitus organises the tendering process, the partner builds the farms and produces the electricity
Metsähallitus seeks experienced partners or consortia from both Finland and abroad to continue project development, build the offshore wind power plants and, in due course, answer for the production of electricity.
“Finland is currently attracting a lot of investments in the global market,” says Tuomas Hallenberg, Senior Vice President, Property Development and Renewables at Metsähallitus.
“The Edith and Ebba projects require solid expertise and extensive resources from their implementers. The newly initiated competitive tendering procedure governed by private law will take time, and is rather demanding for the participating companies. It is therefore extremely important that we carry out the process carefully and ensure that the participants are treated equally,” Hallenberg continues.
Companies or consortia selected as project partners must have the expertise, resources, and experience required both for the successful completion of a large-scale offshore wind power investment project and for the subsequent operation of the wind farm. Project development must take into account the safeguarding of biodiversity in the project areas, the requirements of the main grid, and the management of consumption and production spikes characteristic of wind power. In addition, the selected partners are required to follow responsible and sustainable business practices in their operations, and these will also be audited as part of the competitive tendering process.
The tendering process estimated to take a year
The partners selected through the competitive tendering process can purchase the rights for the offshore wind power projects, lease the offshore areas, and build the power plants. After the investment decision has been made, Metsähallitus will assume the role of lessor of the area, while the partners will be responsible for building the offshore wind farms as well as for producing and selling electricity to the market. The sea areas will remain the property of the state.
The partner selection process will progress in phases. After the submission of preliminary tenders, the most potential partners are selected to proceed to the next phase. These potential partners will then submit their binding tenders, based on which the partners for the project will finally be selected.
Metsähallitus’ goal is to complete the tendering processes of the Edith and Ebba projects during 2024. The partner selection process follows a competitive tendering procedure governed by private law. Information on the participating parties or their tenders is not public.
For further information, please contact:
Tuomas Hallenberg, Senior Vice President, Property Development and Renewables, Metsähallitus, tel. +358 206 394 717, e-mail: tuomas.hallenberg(at)metsa.fi
Otto Swanljung, Director, Wind Power, Property Development, Metsähallitus, tel. +358 206 394 643, e-mail: otto.swanljung(at)metsa.fi
Information for the press
Zero-emission electricity with offshore wind power projects
Metsähallitus has previously initiated the development of the first offshore wind power project in Finland off the coast of Korsnäs. In December 2022, Metsähallitus completed the competitive tendering process for the project planned for the state-owned sea area 15–30 km off Korsnäs. The project is currently being developed in collaboration with Vattenfall.
The estimated annual electricity generation of the wind farm is estimated to be approximately 5 TWh (terawatt hours). More than 8 TWh of wind power was produced in Finland in 2021. Five terawatthours would cover the annual electricity consumption of more than two million three-room flats with standard home appliances, three residents, and an average annual consumption of approximately 2,400 kWh.
Procedure in compliance with the Act on the Right to Transfer State Real Estate Assets
Under the Act on the Right to Transfer State Real Estate Assets, Metsähallitus needs to obtain lease permits for offshore wind power plants from the Government. The related process is one of the numerous central government processes that Metsähallitus will take care of before tendering out the projects.
The project areas will remain the property of the state even after the selection of partners and the transfer of project rights. The payment for the project rights and the rental income will make up part of the revenue that Metsähallitus will produce for the state. The real estate taxes for the project areas will be paid to the municipalities.
Act on the Right to Transfer State Real Estate Assets (973/2002)